Lufthansa Technik to work with Israel's Elbit on military drones

BERLIN (Reuters) - Lufthansa will work with Israeli defence firm Elbit Systems in the field of military drones via its maintenance subsidiary Lufthansa Technik as it seeks to expand its defence business, a spokesperson for the unit said on Monday.

The project concerns an offer to deliver and maintain up to eight of the Israeli Hermes 900 Starliner drones for the German Navy.

Lufthansa Technik will be responsible for maintenance and staff training, while Elbit will be in charge of the production of the drones. The project's value wasn't disclosed by either side.

The companies signed a memorandum of understanding in January this year, but a formal contract was yet to be signed.

Elbit Systems declined to comment.

This is the first military drone project for the subsidiary of the German flagship carrier.

Its defence business includes service and maintenance for NATO's staple aircraft such as the F-35 fighter jets, the Chinook transport helicopters, and the Poseidon reconnaissance planes.

Germany launched a 100 billion euro ($107.68 billion) special defence fund in 2022 in what it described as a "Zeitenwende" or turning point to increase its military spending after Russia's attack on Ukraine.

Hermes 900 Starliner is an Israeli-made reconnaissance and attack drone capable of carrying up to 450 kilograms of payload, operated by India, Canada, Brazil and Switzerland, among others.

The joint project will be presented at the International Aerospace Exhibition ILA in Berlin in June, Lufthansa Technik said.

($1 = 0.9287 euros)

(Reporting by Ilona Wissenbach and Andrey Sychev; Editing by Rachel More, Mark Potter and Louise Heavens)